The Complete Idiot's Guide to Foreign Currency Trading with CDROM
Posted by Allison on 13 April 2009, 10:48
The most rapidly moving investment area in the world is also the most potentially profitable investment area in the world, but it is an area few people know much about. Trading in foreign currency can make you a lot of money, but it can also lose a lot of money if you are not careful. The Complete Idiot's Guide to Foreign Currency Trading is an excellent resource to help the novice foreign currency trader understand this amazing marketplace and develop their winning trading strategy.
From abstract to mainstream
Trading in the foreign currency used to be one of the most fringe types of investing out there, reserved only for the huge international banks and corporations who had the resources to devote to this unusual marketplace. It was considered a somewhat abstract area of investment, one that was simply out of reach to the vast majority of investors. Now, however, the secret of foreign currency trading is out to the rest of the world, thanks to changes in technology and the rise of the internet. What was once seen as complex and abstract is now seen as mainstream and potentially quite profitable.
Online access has made it possible for individual investors to take part in the foreign currency exchange market, but many investors are reluctant to take this plunge because they simply don't understand the complexities and workings of this area of investing. The Complete Idiot's Guide to Foreign Currency Trading takes care of all of this, providing clear and easy to understand explanations and examples to help even the most inexperienced trader learn how to participate in the foreign currency exchange trading market.
Where to begin in foreign currency exchange trading
One of the things The Complete Idiot's Guide to Foreign Currency Trading does best is helping to explain the intricacies of the foreign currency exchange market without being overwhelming or confusing to the new trader. It shows you exactly how to get started in the currency market, from where you should begin to where you should end up.
The range of topics in this book is quite broad, making it all too easy for the authors to confuse the reader, but that simply does not happen. Instead, the book covers the range of topics with thorough explanation and in a logical order, each section building upon the one before it to create a solid foundation of knowledge and understanding.
Some of the topics included in The Complete Idiot's Guide to Foreign Currency Trading include:
- The history of foreign currency exchange trading – Where did it come from? How long has it been around? When did it become important to large banks and corporations? When did it become important to individual investors? What are the ups and downs it has gone through over the years? The book provides a thorough history of the foreign exchange market, giving you important background knowledge.
- Market terms and definitions – As with any kind of specialty (particularly financial specialties) the foreign currency exchange market has a unique language of trading terms. The definitions of these terms are crucial to understanding the market as a whole and how the individual investor can participate in it successfully. The book includes a comprehensive list of market terms, with definitions that are clear and easy to understand.
- The step by step process of placing orders – Placing a trading order on the foreign currency exchange trading market is relatively easy, if you understand the process and why each step in the process is important. From start to finish, the book takes you through the process of placing an order in a way that makes perfect sense.
- Your trading plan – You wouldn't drive on a long trip without a map and some sense of the direction you wanted to go, and neither should you embark on foreign currency exchange market trading without a solid trading plan. The book details what a good trading plan includes, how to create one for yourself, and how to maintain it over time.
- All about risk – The foreign currency exchange trading market is one of the most profitable ever created, but it is also one of the riskiest if you do not have the right knowledge. The book contains excellent information about risk, such as how to evaluate it, how to minimize it, how to use it to your advantage, and the like.
- Stay away from fraud – The rapid growth of individual investors in the foreign currency exchange market has unfortunately led to the rapid growth of unscrupulous people whose only goal is to defraud you in some way so they can get their hands on your money. The book looks at some common sense rules and guidelines for staying away from fraud and the potential loss of money to fraudsters of all kinds.
- Rules, regulations, and oversight – One of the reasons why the foreign currency exchange trading market is so potentially lucrative is the relative lack of regulations governing it when compared to other more traditional markets. Even though it is a fairly wide open marketplace, there are some basic rules and regulations you need to understand and abide by if you want to trade successfully in this market.
- Facts about global currency – Before you can successfully launch in the foreign currency exchange trading market, you must have a good understanding of global currencies and how they interact with each other. Which ones are the major currencies? Which ones are the minor currencies? How do you recognize a currency that is emerging in the marketplace? The book offers a comprehensive collection of important facts about global currency.
- Features of trading platforms – All online trading platforms are not created equal, so you have to find the one with the features and functionality best suited to your needs. Examples of features you might want include visual trading, real time charting, real time price feeds, easy access to technical indicators, hedging, and versatile customization of the user interface. The book describes the most common features of trading platforms, giving you the information necessary to choose one for yourself.
- Analysis (technical and fundamental) – The two primary methods of analysis for foreign currency exchange market traders are technical analysis and fundamental analysis. The book takes you through each type of analysis in detail, including the strengths and weaknesses of each approach as well as practical advice and guidance on how to use the two approaches together to maximize your profits.
Additional bonus CDROM
One of the very nice features of The Complete Idiot's Guide to Foreign Currency Trading is the excellent CDROM that is included as a bonus learning tool. It truly is a terrific addition to the book, because it adds to the information contained in the book in a way that is completely interactive.
The CD gives you access to a demonstration version of proprietary trading software from Global Foreign Trading. The software, called Dealbook, lets you actually log on to the Global Foreign Trading web site and use a practice account to experience the world of trading without risking actual money. This is an excellent learning tool, making it easy to go online and experiment with the concepts and suggestions in the book just as you would use them in the real world.
Another nice feature of the CDROM is the way it provides live feed links to the most current trading information available on every foreign currency. This is the same live feed information professional traders access and use on a daily basis, so it really helps you get a feel for what live trading is all about.
When you take into account the incredible amount of information contained in The Complete Idiot's Guide to Foreign Currency Trading as well as the huge benefits that come with the bonus interactive CDROM, it's easy to see why this book is considered one of the best resources available for the novice trader. If you are interested in learning more about the foreign currency exchange market and how it might be a useful investment tool for you, then The Complete Idiot's Guide to Foreign Currency Trading is a “must have” guidebook to have in your resource library.